An inventory classification model for multiple criteria ABC analysis

Abstract

Inventory classification using ABC analysis is employed extensively in the enterprises. ABC analysis is always referring to only one criterion. However, the situation considering multiple criteria for inventory classification has been presented in the literatures. In this paper, we proposed a better inventory classification model for multiple criteria ABC analysis. The proposed model not only incorporates linear programming model, but also contains nonlinear model. Then through solving the model and analyzing the conclusions, we get a better solution by considering weights values of inventory items for multiple criteria ABC inventory classification. At last, an example is given to illustrate the proposed model. The proposed model is more flexible and representative, which can better provide decision-making basis for inventory managers.